Zomato is the biggest food delivery platform in India with more than 55% market share as of Bernstein Estimate and Analysis’s 2022 report.
No doubt Zomato is successful in satisfying its customers with efficient food delivery but its investors are highly disappointed with its stock’s sluggish performance.
If you are concerned about Zomato’s share price target by 2025, then go through this article as we are discussing fundamental analysis, technical analysis, and other important factors to provide valuable insights about Zomato’s share price target by 2025.
Zomato Share Price Target 2025
Last year was not good for Zomato stock as the share price is still down around 50% from its listing price.
Currently, Zomato’s shares are trading at approximately Rs. 67 per share. According to market analysts, Zomato’s stock price can rise to a potential range of Rs. 85 to Rs. 90 per share by 2025.
Fundamental Analysis of Zomato Stocks
Zomato experienced a higher loss in Q4 2022 due to increased expenses and a slowdown in the food delivery business.
However, The volume of food delivery orders increased by around 15%, and the average order value went up by 7%. Zomato’s adjusted EBITDA became positive in January 2023 (Blinkist contribution not included).
Zomato is making reasonable efforts to reduce its losses, and its adjusted EBITDA (excluding Blinkit) is now below Rs. 275 crores in March 2023, which is a positive sign. The company’s food gross order value remained stable compared to the previous quarter, which management attributed to challenging economic conditions.
Zomato has a positive outlook, as it aims to reach break-even by the fourth quarter of FY23, which is a positive development considering its Zomato Gold program.
Additionally, You can expect signs of improvement in the food delivery sector, with increased demand observed since January. Blinkit is also experiencing strong growth and has significantly reduced its losses.
Technical Analysis of Zomato Stocks
From a technical perspective, the relative strength index (RSI) of Zomato stock is currently at 69.6. This suggests that the stock is not in either the overbought or oversold zone.
The stock has a one-year beta of 1.5, indicating that it has experienced high volatility over the past year. Currently, Zomato stock is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.
Let’s explore Zomato’s technical analysis:
- Price Trend: Zomato’s stock price has shown a bullish trend in the 5 months, with steady growth and occasional corrections. The stock is up by 54% from its 52-week low, indicating potential growth opportunities in the coming years.
- Trading Range: Currently, Zomato’s stock is trading within a specific price range of Rs. 60 to Rs. 70. This range-bound trading indicates that the stock is consolidating and may potentially experience a breakout, leading to further price appreciation.
Factors Affecting Zomato’s Share Price by 2025:
Several key factors may impact Zomato’s share price in the years ahead. Understanding these factors can provide valuable insights into the company’s growth potential and aid in predicting its future performance. Let’s explore some of the most significant factors:
- Market Expansion and Competitive Landscape: Zomato operates in a highly competitive market facing established players and emerging rivals. The company’s ability to expand its market presence and maintain a competitive edge will play a crucial role in determining its share price trajectory.
- Technological Innovation and Adaptability: The food delivery industry is witnessing constant technological advancements. Zomato’s ability to innovate and adapt to changing customer preferences, delivery logistics, and emerging technologies will be key to its long-term success and share price performance.
- User Growth and Retention: Zomato’s user base is a vital indicator of its market dominance and revenue potential. Sustained user growth, coupled with effective customer retention strategies, will contribute to the company’s value proposition and positively impact its share price.
- Regulatory Environment and Government Policies: The food delivery industry is subject to various regulatory frameworks and government policies. Any significant changes in regulations or policies can have a significant impact on Zomato’s operations and financial performance, thus influencing its share price.
Financial Performance of Zomator Stock
Zomato has showcased consistent revenue growth of 66% YoY and 29% YoY profit growth in the last 5 years. Zomato’s revenue figures for the last 5 years are as below.
|Fiscal Year||Revenue (in INR crore)||Growth Rate (in %ge)|
In terms of profitability, Zomato has exhibited a positive trend in the last quarter. Here are the company’s profit statistics over the last five fiscal years:
In conclusion, predicting Zomato’s share price target for 2025 requires a thorough analysis of various factors that could influence its performance in the coming years. While considering factors such as market expansion, technological innovation, user growth, and regulatory environment, analysts project a potential price range of Rs. 85 to Rs. 90 per share.
You can also read about other stocks’ target prices –
- IRCTC Share Price Target
- Tata Steel Share Target Price
- Suzlon Share Price Target
- Wipro Share Price Target
The projected target price for Zomato shares in 2025 will depend on various factors and market conditions. According to analysts and experts, it may reach 85 to 90 price range in 2025.
Factors such as company’s financial performance, growth prospects, industry trends, competitive landscape, macroeconomic factors, and investor sentiment are taken into consideration.
Yes risks are always there. These could be – changes in market conditions, regulatory developments, competition, macroeconomic factors, and unforeseen events that can impact the company’s performance and investor sentiment.
To stay updated on the latest target price estimates for Zomato shares in 2025, you can follow financial news outlets, read analyst reports, and monitor the company’s investor relations website. Additionally, subscribing to newsletters or joining investment forums can provide valuable insights and discussions on the topic.